Whether it is an executive officer or employee who is subject to the disposition of income from outflow.

The plaintiff, who is the person to whom the outflow from the company belongs in the calculation of earnings and the amount of the outflow from the company, cannot be regarded as an executive officer. Thus, the plaintiff can not be regarded as a bonus and disposed of as a income of the plaintiff.

Article 67 of the Corporate Tax Act

1. The defendant's appeal is dismissed.

2. The costs of the lawsuit are assessed against the defendant.

1. Purport of claim

The Defendant’s disposition of imposition of global income tax of KRW 9,822,907,220 against the Plaintiff on January 3, 2005 is revoked.

2. Purport of appeal

The part against the defendant in the judgment of the first instance is revoked, and the plaintiff's claim against the defendant is dismissed.

1. Details of the disposition;

The reason why the court's explanation in this part is as follows: "○○○○○○○○○○○○○○○○○○○," each of the 2nd, 10, 11th, 3rd, 4th, 3rd, 15,46,19,036 of the disposal amount, 14,69,084 out of 15,46,19,19,036 of the disposal amount, 15,69,036, 14,69,000 among the total income amount, shall be deemed as earned income of the first instance court; and "the first instance court's reasoning of the decision, 1, 2005, 5th, 2005" is the same as that of the part of the disposition; therefore, it shall be cited as it is in accordance with Article 8 (2) of the Administrative Litigation Act, Article 420 of the Civil Procedure Act, and Article 420 of the Civil Procedure Act."

A. The plaintiff's assertion

The defendant's disposition of this case is unlawful for the following reasons.

(1) From March 2001, ○○○○○○○ was a small real estate rental business and closed down, and there was no funds contribution to purchase the overseas convertible bonds of this case by ○○○○○○○○○○○○○. A purchaser of the said overseas convertible bonds was the Plaintiff upon introduction by ○○○○○○, and the source of the fund was all the Plaintiff. However, for the transaction’s convenience, the account was used in the name of ○○○○○○○○○○○○ established on ○○ Securities, and thus, the subject of the interest to dispose of the said stocks should also be deemed the Plaintiff

(2) ○○○○○○○○○○ on April 10, 2001, used 4.1 billion won in acquiring real estate located in Seoul ○○○○○○○○○○○○ on April 10, 201, did not leak out. Therefore, the amount equivalent to the above amount should be excluded from the income from outflow.

(3) The disposition that the Plaintiff recognized as a bonus to the Plaintiff is not an officer or employee of the ○○○○○○○○○.

(b) Related statutes;

Article 14 of the Framework Act on National Taxes

(1) If the ownership of income, profit, property, act or transaction subject to taxation is merely nominal and a person to whom such ownership belongs exists, the tax-related Acts shall apply to such person to whom such person actually belongs as a taxpayer.

○ Article 66 of the Corporate Tax Act, Decision and Correction

(2) Where a domestic corporation files a report under Article 60 in any of the following cases, the head of the district tax office having jurisdiction over the place of tax payment or the Commissioner of the competent Regional Tax Office shall correct the tax base and

1. Where there are errors or omissions in the contents of the report;

Article 67 of the Corporate Tax Act

In filing a report on the corporate tax base on the income for each business year under the provisions of Article 60 or in determining or revising the corporate tax base under the provisions of Article 66 or 69, the amount included in the calculation of earnings shall be disposed of as bonus, dividend, other outflow from the company, internal reserve, etc. according to the person to whom it reverts

Article 43 of the Enforcement Decree of the Corporate Tax Act

(6) Officers under the provisions of paragraphs (1) through (5) (hereinafter referred to as “officer”) shall mean persons performing the duties under the provisions of each of the following subparagraphs:

1. All members of the board of directors, including the chairperson, president, vice president, president, representative, managing director, managing director, and liquidator of the corporation;

2. Executive partners or directors of unlimited partnerships, limited partnerships and limited companies;

3. Auditor.

4. Other persons performing duties similar to those under subparagraphs 1 through 3.

Article 87 of the Enforcement Decree of the Corporate Tax Act

(1) "Person with a special relationship prescribed by Presidential Decree" in Article 52 (1) of the Act means a person with a relationship falling under any of the following subparagraphs with a corporation (hereinafter referred to as a "person with a special relationship"):

1. Persons recognized as exercising real influence over the operations of the concerned corporation, such as exercising the right to appoint officers or determining the course of business (including persons to be treated as directors under Article 401-2 (1) of the Commercial Act) and their families;

2. Stockholders (not including minority shareholders; hereafter in this Sub-section the same shall apply) and their relatives;

3. Officers and employees of a corporation, or employees of a stockholder (referring to the officers in case of a profit-making corporation, and the director and founder in case of a non-profit corporations) or other persons whose livelihood depends on the cash and other assets of the corporation or stockholder, and their relatives who depend upon them for their livelihood;

Article 106 of the Enforcement Decree of the Corporate Tax Act

(1) The amount included in the calculation of earnings under the provisions of Article 67 of the Act shall be disposed of under the provisions of the following subparagraphs. The same shall apply to non-profit domestic corporations

1. Where the amount included in the calculation of earnings has clearly leaked out of the company, the dividends, bonuses from the disposition of profits, other income, and other outflow from the company under each of the following items according to the person to whom they accrue: Provided, That where the accrual is unclear, it shall be deemed as accrual to the representative (where the total number of stocks held by an officer who is not a minority shareholder under the provisions of Article 87 (2) and persons with a special relationship under the provisions of paragraph (4) of the same Article is 30% or more of the total number of stocks issued or total investment amount of the concerned corporation and the officer actually controls the operation of the corporation, he shall be deemed the representative, and where a corporation which has been exempted from withholding taxes under the provisions of Article 46 (12) of the Restriction of Special Taxation Act reports that there is a separate representative among the officers who are stockholders, the reported person shall be the representative,

(a) Where the person of accrual is a stockholder (not including stockholders who are officers or employees), the dividends of the person of accrual;

(b) If the person to whom it belongs is an officer or employee, the bonus to the person to whom it reverts;

(c) Where the person to whom the income accrues is a corporation or an individual operating the business, other outflow from the company: Provided, That it shall be limited to cases where the distributed profit constitutes the income of a domestic corporation or a domestic business place of a foreign corporation under Article 94 of the Act for each business year, or the business income of a resident or a nonresident

(d) Other income of the person to whom it reverts, in case where the person to whom it reverts is the person.

(c) Fact of recognition;

The following facts may be acknowledged by taking into account each entry in Gap evidence of No. 3 and Eul evidence of No. 2 through 11 (including each number), or the whole purport of the pleading:

(1) The Plaintiff, a real control over ○○ Credit Depository, was established in the vicinity of Seoul, from 1997 to around Seoul, and had an office for acquisition, merger, and stock transaction. However, on September 200, 200, the Plaintiff acquired ○○○○○○, a company with its business objectives as cosmetics, clothing, and electronic parts sales, and export and import business, and subsequently registered the name of the representative of the said company as ○○○○, the Plaintiff’s birth, who was expected to retire at the company working at around 200, 10, and around 200, and agreed to do so. The Kim○○ also retired from ○○○, a new business.

" ○○○○○○○ Co., Ltd. (2) was established on March 30, 1994 with its total amount of 50,100,000 won. On September 25, 2000, the Plaintiff acquired the shares of ○○○○○ Co., Ltd. (hereinafter referred to as “○○○○○○○○”). Around 200-0, ○○○○○○ Co., Ltd. (hereinafter referred to as “○○○○”). Around 200-0, ○○○○ Co., Ltd. (hereinafter referred to as “○○○○”) registered ○○○○ Co., Ltd.’s head office as ○○○○○○○ Co., Ltd. (hereinafter referred to as “○○○ Co., Ltd.”) with 300,000,000 won and 10,0000,000 won and 20,000 won and 20,000 won.

(3) The Plaintiff opened an account for securities trading in the name of ○○○○○○ Securities, ○○ Securities, ○○ Securities, ○○ Securities, ○○ Securities, ○○ Securities, ○○ Securities, ○○○○○○○○○○○○○, and ○○ Banks. To acquire the said overseas convertible bonds, the Plaintiff opened an account for foreign currency securities trading in the name of ○○○○○○○○ Securities (Account Number: 04-45046) with the help of ○○○○○○○, an employee of ○○○○○○○○○○○, etc.

(4) On January 22, 2001, a 1.42 billion won was transferred from the ○○○○○○○ account opened in the name of ○○○○○○○○ account, and 9 million won was transferred from the ○○○○○○○ account opened in the name of ○○○○○○○○ branch in the name of ○○○○○ branch in the name of ○○○○○○○ branch in the name of ○○○○○ branch in the ○○○○○ branch in the ○○○○○○ branch in the ○○○○○ branch in the ○○○○○○ branch in the aggregate, 2.19 billion won was over the ○○○○○○○ branch in the name of ○○○○○ branch in the name of ○○○○○○○○ branch in the ○○ branch in the ○○ branch in the ○○ branch in the name of ○○ branch in the ○○ branch in the name of 3 billion won.

(5) The overseas convertible bonds in the name of ○○○○○○○○○○○○○○○○○ was a claim for conversion of shares, and was converted into 1,334,042 shares of ○○○○○○○○○○○○○○○○○○○○ on February 8, 2001. On the 10th of the same month, KRW 1,334,042 of the said shares were 50,000 shares with each of ○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○ account. Of them, 82,700 shares were transferred in total between 201,293639,200.

(6) Of the above sales proceeds, KRW 17,565,229,328 is an account in the name of ○○○○○○○○○○○○ (number:0 I-25-02-587). The remainder was transferred to ○○○○ bank account in the name of ○○○○○○○○○, and the remainder was transferred to ○○ bank account in the name of ○○○○○○○○○○○; between 2, 23, 201, and 18, between ○○○○○, ○○○, ○○, and ○○○○○, and ○○, and one billion among them was transferred to ○○○○○○○○○○ on February 28, 201.

(7) In the process of the above deposit, account transfer, and withdrawal, Kim○-○ requested the Plaintiff to the ○○○○○○ in charge of the business affairs as well as opening the securities account under the name of the Plaintiff.

(8) Meanwhile, the registration of ownership transfer was completed in the 4,10, 000 ○○○○○○○○○○○○○○ on September 20, 201 on the ground of sale as of August 31, 2001, and 803,9 square meters on the ground of the above land and 6th basements on the ground of the ground of the lower bid on the 3,301.3, and 30, and 4, 10, and 00 won on the ground of voluntary auction. In other words, the registration of ownership transfer was completed in the ○○○○○○○○○○○○○○ on September 20, 201. The officially announced land price on September 2001 was KRW 3,90,00 per square meter.

(9) From September 25, 2000 to September 30, 2002, ○○○○○○○○ filed a value-added tax return on real estate rental business from February 2, 2000 to February 2, 2001 while engaging in services and corporate consulting business.

(unit: Won)

Category of Flag

Sales Schedule

Purchase Schedule

Tax amount payable

2002

0

0

0

201.1

64,738,220

1,315,546

6,342,267

201.2

100,142,230

3,636,194

9,650,603

Total

164,880,450

4,951,740

15,992,870

(10) Although the Plaintiff was practically controlling the ○○ Mutual Savings and Finance Company, it was externally revealed in the name of the Plaintiff as of 2001, there was KRW 14,600 non-listed shares such as ○○○○○○○○○○, etc., and KRW 98,00,000 in face value, and did not own real estate or other financial assets, and there was only KRW 57,00,000 in earned income from ○○○○○○, etc. on 201.

(11) The report to ○○○○○○○’s account books or tax authorities on the instant overseas convertible bonds was not entirely recorded in the transaction related to the instant overseas convertible bonds. The source of the trading fund for the said overseas convertible bonds was not recorded as a provisional deposit, etc. In an investigation agency, Kim○ stated that the Plaintiff’s office was not located in the Plaintiff’s office, and that there was no real office in Seoul ○○○○-dong, 467-23, ○○-dong, Seoul, ○○○○○-dong, ○○○○○○○-dong, ○○○○○○○○,

D. Determination

(1) As to the First Claim

○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○ was an act of trading an asset under the name of the Plaintiff’s ○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○. As such, the Plaintiff’s act of acquiring the asset solely based on the name of the Plaintiff’s ○○○○○○○.

(2) On the second argument

A corporation liable to pay taxes under Articles 112 and 116 of the Corporate Tax Act shall keep the records of all transactions in the account book, and even if one billion won among the profits from disposal of stocks was transferred to another account of ○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○.

(3) On the third argument

Article 106 (1) 1 (b) of the Enforcement Decree of the Corporate Tax Act (amended by Presidential Decree No. 2001, Dec. 31, 2001; Presidential Decree No. 17033; hereinafter the same) concerning whether the Plaintiff falls under the “executive or employee of the ○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○”).

3.In conclusion

Therefore, the plaintiff's claim of this case is justified, and it is just in conclusion with the judgment of the court of first instance. Thus, the defendant's appeal is dismissed. It is so decided as per Disposition.